If you’ve ever bought a house in Pompano Beach, you’re probably familiar with the names Fannie Mae and Freddie Mac. These two government mortgage finance giants are responsible for helping millions of Americans realize their dream of home ownership. Most people seeking a home loan in Pompano Beach will never actually speak or come into contact with these companies. So where can homebuyers find assistance? Fannie Mae and Freddie Mac mainly deal with lenders. But you don’t have to go far to find a mortgage lender in Pompano Beach that can help you secure a home loan in Pompano Beach. The professionals at Ace Mortgage Corp. have been helping homebuyers obtains loans in Pompano Beach through Freddie Mace and Fannie Mae since 1996.
Fannie Mae and Freddie Mac are organizations created by the government with buy mortgages from banks and lenders to create more funds other lenders to make home loans. These organizations have an enormous influence on the American economy. To put it into proper perspective, Fannie Mae and Freddie Mac combined account for $5.4 trillion of all U.S. home mortgages, which makes up for nearly half the total home loans in the nation.
Fannie Mae was originally created during the Franklin D. Roosevelt administration back in 1938. It was formally known as The Federal National Mortgage Association. Freddie Mac began in 1970 with the objective of preventing Fannie Mae from achieving a monopoly of government-backed mortgages. Because both organizations were created to provide the same objective, the biggest difference is Fannie Mae works mainly with lenders while Freddie Mac deals mostly with savings and loans. Since the federal government took over both organizations in 2008 due to the sub-prime mortgage crisis, both organizations have worked diligently to lower costs for borrowers during the recovery of the housing market.
There are also a few other fundamental differences between the two organizations. Fannie Mae allows for multiple properties to be owned by a single owner up to 10 units. However, Freddie Mac can only guarantee no more than four units. Down payments are also different, with Fannie Mae requiring a minimum of 3 percent from home loan borrowers. Freddie Mac requires borrowers to make at least a 5 percent down payment.
Home financing in Pompano Beach doesn’t have to be complicated. The experts at Ace Mortgage Corp. can find best home loans in Pompano to fit the specific needs of each home buyer. As a licensed mortgage lender in Pompano Beach, their professionals can work with either Freddie Mac or Fannie Mae to provide the best home mortgage. To learn more, call Ace Mortgage Corp. today and get started on making your dream of home ownership become reality.